Monday, November 09, 2015
A downside start to the week as the Dow fell 179 points on good volume. The advance/declines were 4 to 1 negative. The summation index is now heading lower. I do not think that this is the beginning of anything major to the downside. I do think it is an opportunity to purchase some SPY November calls on weakness tomorrow. We did come off of the lows today but the short term technical indicators have rolled over. If we are lower tomorrow, one of my timing indicators will be giving a buy signal. The 200 day moving average comes in at 2063 for the S&P 500. That would be a good spot to buy the November calls. That is what I'll be trying to do tomorrow. GE was off a little over 1/8 on extremely heavy volume. There is still plenty of interest in owning GE here. I think that bodes well going forward for the overall market. I could be wrong. Gold was up a bit on the futures as the US dollar was a bit lower today. The XAU was up a point and GDX gained 1/3. Volume was average. It would be helpful for the bulls if the gold shares hold their most recent lows of August and September. We'll see. Mentally I'm feeling a bit tired, could have slept better. It will be interesting to see if we get any follow through downside tomorrow. We do have a plan and hopefully the market will cooperate. Not much economic data this week until Friday. Europe was weak yesterday so we will see what Asia does overnight. So there you have it. We'll see if the overseas markets follow the Dow lower tonight and see what happens tomorrow.